ACLEDA BANK (LAO) LTD
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Acleda Bank Laos (ABL) is the only bank in Laos with a focus on micro, small and medium enterprises (MSMEs). ABL aims to maintain its medium-sized loans in urban areas to sustain profitability whilst simultaneously expanding its network and increasing its small loan portfolio.
What is our funding objective?
ABL presents the ideal vehicle for channelling FMO's funds towards this MSME market segment that has limited access to financial services in a lower-income country. FMO is to provide a senior unsecured local currency loan to support growth and the operational scale of ABL in reaching out the MSME market.
Why do we fund this investment?
ABL provides financial services to MSME in both urban and rural areas that are currently still under-served. Funding in Laos, especially long-term, is limited. The client must on-lend a large part of the funds in local currency. Therefore, attracting local currency funds is essential and FMO's loan is highly additional. The sponsor/shareholder is a succesful, long-standing client of FMO.
- Region
- Asia
- Country
- Lao People's Democratic Republic
- Sector
- Financial Institutions
- Effective date
- 4/4/2014
- End date
- 3/7/2019
- Total FMO financing
- USD 12.50 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B